Tuesday, April 7, 2015

Russia & Vietnam will Trade using their own Currencies

Manuel:  Russia continues to stay away from the use of US Dollar in international trade.

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Russia and Vietnam should start using their domestic currencies in bilateral trade more actively, Russian Prime Minister Dmitry Medvedev has said.

“Certainly, it’s necessary to think of using non-standard forms of cooperation and financial interaction, including, for example, settlements in local currencies, rubles and dongs,” Medvedev said during a meeting with businessmen in Vietnam’s largest city of Ho Chi Minh City, formerly Saigon.

The prime minister recalled that Russia had a similar experience with other countries in the Asia-Pacific region, and that 10 years ago the Vietnamese-Russian bank was created.

"We should think how to boost the work of the bank", Medevedev said.

Proposals for the transition to national currencies in trade between Russia and Vietnam should be ready in May, Andrey Kostin, the CEO of Russia’s second biggest bank, VTB, said in Vietnam.

On Monday, Medvedev said that a free trade zone deal with the Russia-led Eurasian Economic Union was in the “home stretch,” adding that the final deal is expected to be signed by July.

The prime minister stressed that the draft document included significant preferences for Vietnam.
Medvedev has been in Vietnam since Monday, when he began a two-day official state visit to the country.

The two sides confirmed their plans to boost bilateral trade in the next five years to $10 billion. They also guaranteed the development of Vietnamese and Russian offshore oil and gas projects. On Monday, Russia’s Gazprom Neft and the Oil and Gas Corporation of Vietnam signed a memorandum of understanding to acquire a 49 percent share of Vietnam’s Binh Son Refining and Petrochemicals. In total, Russia and Vietnam signed 17 priority projects for 2015 including the supply of equipment for Vietnamese power plants, construction and technology upgrades for enterprises and the creation of industrial clusters.


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All the key issues over a Vietnamese free trade zone with the Russia-led Eurasian Economic Union (EEU) have been agreed. The deal should be sealed by July, according to Russian Prime Minister Dmitry Medvedev and Vietnamese counterpart Nguyen Tan Dung.

“The preparation of documents has entered the home straight. All the principal issues, once again, have been discussed. I hope that we will soon be able to turn to signing this agreement,” said Medvedev as quoted by RIA.



"Our turnover has slightly decreased in recent years, so, in order to improve the situation, we decided to instruct our ministries, businesses and agencies on both sides to take measures in signing an agreement on a free trade zone between Vietnam and the Eurasian Economic Union in the first half of 2015,”Nguyen said on Monday to journalists, adding that Vietnam seeks to increase trade with Russia to $10 billion by 2020.

Medvedev confirmed plans to boost bilateral trade in the five years following, noting that it fell to $3.7 billion in 2014 from $4 billion in 2013.

"We have seen some reduction in trade in the past year, which, as we have stated, will be temporary, and we are sure about it," he said adding that establishing a free trade zone between Vietnam and the EEU is going to be an effective measure in pursuing the plan.
Russian-Vietnamese projects

Russia and Vietnam also guarantee the development of Vietnamese and Russian offshore oil and gas projects. Russia’s Gazprom Neft and the Oil and Gas Corporation of Vietnam signed a memorandum of understanding to acquire a 49 percent share of Vietnam’s Binh Son Refining and Petrochemicals.

The Russian and Vietnamese delegations signed 17 priority projects for 2015 that include the supply of equipment for Vietnamese power plants, construction and technological upgrading of enterprises and the creation of industrial clusters.

Medvedev said Russia is working out the possibility of building a plant for Russian trucks (GAZ, KAMAZ, UAZ) and road equipment in Vietnam, as well as the production of rolling stock for railways.

Vietnam is currently implementing about a hundred projects with Russian investment. Russia hopes to shortly start building Vietnam’s first nuclear power plant and create a Center for Nuclear Science and Technology, Medvedev said.

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